Edit:
Sponsor interest? Outside people or RPG group itself?
Each sector takes an independent call. Independent negotiations between LSG and company management. Upto them to decide. Would give preference to own companies, but if someone comes with a better deal, then them.
Response has been good. 26 cr population of UP is a huge market. Overwhelming interest. Almost all spots closed. 1/2 open. Announcements will come soon. MyCircle11 jersey sponsor.
Media rights this year and next 5 years?
Sense is there is huge interest. Could see rates higher than earlier anticipated. But not for me to say.
Business of sport and valuation behind it is undergoing a shift. Getting higher valuation is not a big deal or surprise.
What about recovering investments with sports valuations going up or just a frenzy? (wasn’t about LSG but a general question, ipl rights, etc.)
Don’t look at contribution from each individual investment, but the full package. Not just IPL rights, but popularity and eye balls it adds.
Other sports teams as a business?
Matter of time before football comes into the spotlight. TT investment was low to begin with. Marginal losses. There might be some broadcaster interest going forward. But it’s about building brand and creating ecosystem for sports.
Media business. Acquisitions - open magazine, fortune india, editorji. What is the vision for media business? Digit overtaken prints on spend. Views and plans on ecosystem?
Slowly and steadily increasing presence in the space. Looking for international brands. Will expand digital presence. Not in a hurry. Will do it cautiously, steadily but definitely. Though digital is growing, but print is a viable media for the foreseeable future.
Retail space? “Dont want to be another future”. What is your strategy? Retail expansion in future?
Will add significant square footage to operations. Increased out of store sales hugely (phone delivery, online, etc.). This business has doubled over 12 months and will grow this aggressively. Don’t want to be reckless. Will grow in select geographies. Bengal - biggest retailer. UP - scaled up to 34 stores. Coastal Andhra - biggest retailer. Mumbai - natures basket has huge presence. Focus is on few geographies. Expect higher sales and footfalls in physical stores after COVID
SAREGAMA
Rebuilt itself completely - technology, approach, outlook, etc. Lot of innovation with product delivery digitization. Huge repository.
Carvaan - Great success. Launched Karaoke version last year. More versions coming soon. Focusing on audio rights. Have the biggest banners - Dharma, Bhansali, etc.
#1 in Telegu, Hindi, Bhojpuri and Tamil. Focusing on regional music strongly.
Films - 17/18 films on OTT. Deliberate strategy to focus on budget films. 30/35 days. Appeal to audiences of particular regions. Lot of films specific to North East, Hindi heartland. Subjects/themes/ideas that focus on specific regions. Get very strong eyeballs.
Does IPL deal go beyond business?
Need to be passionate about a business. If you/team isn’t passionate or don’t have competency and efficiency, will not succeed. You don’t invest 7k crores for personal pleasure or vanity. Wouldn’t have invested if didn’t make business sense. If broadcast rights go at 50K crores. Net outgo will be lower than 2200 cr.